A foreclosure and impending public auction threaten the Metairie Towers redevelopment at 401 Metairie Road. This decision comes after the project’s lender filed a foreclosure suit against the owner, marking a significant reversal for a high-profile condo conversion in Old Metairie.
New Orleans CityBusiness reported that the lender, Bay Point Capital Partners, initiated foreclosure proceedings, seeking to recover a loan balance that has ballooned to $22.1 million due to default interest and fees. The original $19 million bridge loan, granted in October 2024, now has daily interest accruing at approximately $15,833 since early December 2025.
The property, under the ownership of D.K.A. One LLC led by developer Darren Aschaffenburg, is a seven-story structure with 219 units. Initially acquired for $24.5 million, plans had included reducing the unit count to about 160. However, financing obstacles and escalating costs have stalled progress.
Despite earlier talks of tax incentives with Jefferson Parish, no definite benefits were secured. The outcome of this foreclosure could have significant implications for local real estate, influencing land values and presales in the commercial redevelopment market.
With foreclosure documents filed as of December 22, 2025, the lender is pushing for an auction, though no date has been set. This situation provides both a challenge and opportunity for potential buyers, possibly shaping future redevelopment strategies in Old Metairie.
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